Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1887-01-18
TERMINAL DROPS
AND CREATES ANOTHER EXCITEMENT
IN HEw YORK.
The Negotiations with the East Tennessee
and Gsorgia-Intsrvisvs with
Directors-Big Figures.
[speci.l telsgram % DE pIspatch. ]

New YORK, January 17.--Although
the deal by which the Richmond and
West Point Terminal Company IS ex-
pected 10 obtain the control OF the East
Tennessee, Virginia and Georgia road
is generally believed to be settled, yet,
as matter of fact, it is not actually
consummated. This morning the direc-
tors Of the Terminal Company held q
meeting, at which the special committee
of five appointed last week to negotiate
with East Tennessee people made re-
port of the result of their conference.
The directors received the report and
continued the committee, giving 1t
power to conclude the negotiations.
The directors also authorized the Issue
of S14, 000,000 new common stock and
a collateral trust bond for 80, 100000
at 6 per cent per annum, to run ten
years. Ont of this new stock 80, 100000
will beused to purchase the stock OF the
Richmond and Danville railroad not
already owned by the Richmond Ter
minal Company, at the ratio OF 1--WE
shares of Terminal stock for one OF
Richmond and Danville. The remain
ing $4,000, 900, representing the par
value of 10000 shares, will be used as
part payment of the SO, 000,0 600 first
preferred stock of the East Tennessee
held 10y the Brice-Thomns syndicate on
the basis of 40 per cent, that being the
price on which the stock payment Is TO
he made. This will be equal to 81, 600,-
coo, leaving balance of 81, AGO. 900 to
he paid in cash, this $4,000, 900 East
Tennessee stock being held at par. The
collateral trust bond of $500, 900 will
he given to the syndicate advancing
the money to pay the S4,400, 900
for the East Tennessee stock,
while the balance will he used
to pay off the floating debt of the Rich
mond Terminal Company.
AN INTERVIEW.
One of the committee said to-day
TO your correspondent that thus far
everything was progressing fayOrably,
but that there were various questions OF
detail to he arranged before the matter
could be actually settled, and that one
of the points then being considered
was the terms of the trust deed. In
connection with this deal there was
started yesterday story to the effect
first, that the Norfolk and Western
people were going to get out an injunc-
ton restraining the Terminal East Ten
nessee syndicate from carrying out
this bargain and second, that similar
action was about to be taken by the
Junior security holders of East Tennes-
see second preferred and common
stock.
This evening a director of the Nor
folk and Western railroad said to your
correspondent that so far as his road
was concerned the reported action OF
the holders of the junior Fast Tennes-
see stock-a gentleman thoroughly con
versant with the whole situation
| did not believe there was any truth
in it. He ALSO said that the largest part
of the Junior stock was held in Lon
don, and that in his advices received
during the day from the other side, No
reference had been made to this sub
ject. and he thought the whole story
simply one gotten up for speculative
purposes.
THE BREAK.
There were large dealings in the
| Richmond terminal stock and break
in the price from SO to 45g, the closing
being at 49,, while the various East
Tennessee stock fell off from to 4peI
cent. The break in terminal is sup
posed by those well-informed in these
matters to have been caused by the
secret unloading of the Brice-Thomas
syndicate, the members of which were
heavy holders at low prices.
The same Norfolk and Western di-
rector who denied the injunction story
said the Terminal people were anxious
to have the Norfolk and Western road
included in the deal, and that he had
been sounded on the subject by Presi'
dent Sully, of the Terminal Company